SFeDu
of.211, Gorgoko St., 88 
Rostov-on-Don
Russia
344002
+7 (863) 250-59-54
This email address is being protected from spambots. You need JavaScript enabled to view it.
te@sfedu.ru

TERRA ECONOMICUS

  • Home
  • Issues
  • 2018
  • No 2
  • Implementation of the theoretical approach to evaluate the economic efficiency of the institutional change in the industry market

IMPLEMENTATION OF THE THEORETICAL APPROACH TO EVALUATE THE ECONOMIC EFFICIENCY OF THE INSTITUTIONAL CHANGE IN THE INDUSTRY MARKET

TERRA ECONOMICUS, , Vol. 16 (no. 2),

The article includes the description of the content and realizing process of author theoretical approach to evaluate of the economic efficiency of institutional changes with regard to industry markets; this is the innovative sight on the method of the institutional environment dynamical analysis. The realizing process of sought method represents the definition of limitations of the industry market, assignment of the economic subjects and description of its institutional environment, exposure and analysis of institutional changes, modeling of the economic efficiency of institutional changes. Eventually, the gradual analysis of institutional changes efficiency on the ground of offer model allows seeing what subject of industry market is a receiver of most profit and who has the vast losses. Therefore, it is possible to carry out such a change of the institution, which will contribute to a more even distribution of benefits and losses so that none of the economic subjects of the industry market was the recipient of net losses and none of the groups of economic subjects did not become the owner of a significant gain. So, a comprehensive analytical tool for the identification and economic analysis of institutional market changes can directly solve the problems of applied institutional analysis of industry market interactions.


Keywords: institutions; institutional environment; institutional change; theoretical approach; evaluate the economic efficiency; industry market; limitations of the industry market; economic subjects of the industry market

References:
  • Alas, R. (2015). Resistance to institutional and organizational change: An individual perspective, pp. 153–165 / In: F. E. P. Dievernich, K. O. Tokarski, J. Gong (eds.). Change Management and the Human Factor: Advances, Challenges and Contradictions in Organizational Development. Springer.
  • Breton, A. and Wintrobe, R. (1982). The Logic of Bureaucratic Conduct: An Economic Analysis of Competition, Exchange, and Efficiency in Private and Public Organizations. Cambridge: Cambridge University Press.
  • Dabrowska, E. and Zweynert, J. (2015). Economic Ideas and Institutional Change: The Case of the Russian Stabilisation Fund. New political economy, 20(4), 518–544.
  • Du, K. and O’Connor, A. (2018). Entrepreneurship and advancing national level economic efficiency. Small Business Economics, 50(1), 91–111.
  • Elsner, W. (2017). The institutionalist theory of institutional change revisited: the institutional dichotomy in a more formal perspective. Journal of Institutional Studies, 9(2), 6–17.
  • Evenhuis, E. (2017). Institutional change in cities and regions: A path dependency approach. Cambridge Journal of Regions, Economy and Society, 10(3), 509–526.
  • Hannah, L. and Kay, J. A. (1978). Concentration in Modern Industry: Theory, Measurement and the U.K. Experiencе. Journal of Political Economy, 86(6), 1162–1164.
  • Hirschman, A. O. (1964). The Paternity of an Index. The American Economic Review, 54(5), 761.
  • Jones, E. C. (2003). Building on Ostrom’s ‘The Rudiments of a Theory of the Origins, Survival and Performance of Common-Property Institutions. Journal of Ecological Anthropology, 7(1), 65–72.
  • Nort, D. (1997). Institutions, institutional change and economic performance. Мoscow: Nachala Publ. (In Russia.)
  • Ostrom, E. (2005). Understanding Institutional Diversity. Princeton: Princeton University Press.
  • Ostrom, E. (2010). Beyond Markets and States: Polycentric Governance of Complex Economic Systems. American Economic Review, 100(3), 641–72.
  • Poteete, A. R., Janssen, M. A. and Ostrom, E. (2010). Pushing the Frontiers of the Theory of Collective Action and the Commons, pp. 215–346 / In: A. R. Poteete, M. A. Janssen and E. Ostrom. Working together: collective action, the commons, and multiple methods in practice. Princeton Univ. Press.
  • Radnitzky, G. (1987). Cost-Benefit Thinking the Methodology of Research: The ‘Economic Approach’ Applied to Key Problems to the Philosophy of Science, pp. 283–334/ In: G. Radnitzky and P. Bernholz (ed.). Economic Imperialism: The Economic Approach Applied Outside the Field of Economics. New York: Paragon House.
  • Rozanova, N. M. (2002). Market structure and incentives for innovation. Problemy prognozirovaniya, 37. (In Russia.)
  • Simon, H. A. (1972). Theories of Bounded Rationality, pp. 161–76 / In: C. B. McGuire and R. Radner (ed.). Decision and Organization: A Volume in Honor of Jacob Marschak. Amsterdam: North Holland.
  • Simon, H. A. [1947] (1965). Administrative Behavior: A Study of Decision-Making Processes in Administrative Organization. New York: Free Press.
  • Skokov, R. Yu. (2014). Institutional development of additive goods markets in modern Russia. Abstract of dissertation submitted to fulfill the requirements for Cand. Sci. (Econ.) dissertation. Volgograd, 46 p. (In Russia.)
  • Suharev, O. S. (2016). Institutions, behavior of agents and efficiency. Journal of Institutional Studies, 8(1), 54–71. (In Russia.)
  • Tambovtsev, V. L. (2004). On the variety of forms of description of institutions. ONS: Obshchestvennye nauki i sovremennost’, 2, 107–118. (In Russia.)
  • Tambovtsev, V. L. (2014). Methods of economic analysis of law in the design of normative legal acts. Rossijskij zhurnal pravovyh issledovanij, 4, 101–107. (In Russia.)
  • Volchik, V. V. (2012). Institutional changes: towards a general theory. Journal of Institutional Studies, 4(4), 4–6. (In Russia.)
  • Williamson, O. E. (1985). The Economic Institutions of Capitalism – Firms, Markets, Relational Contracting. New York: Free Press.
  • Williamson, O. E. (2000). The New Institutional Economics: Taking Stock, Looking Ahead. Journal of Economic Literature, 38, 595‒613.
  • Williamson, O. E. (2011). Corporate Governance: A Contractual and Organizational Perspective, pp. 3–32 / In: L. Sacconi, M. Blair and R. E. Freeman. Corporate Social Responsibility and Corporate Governance: The Contribution Of Economic Theory And Related Disciplines. Palgrave.
  • Zhang, H., Hudson, R., Metcalf, H. and Manahov, V. (2017). Investigation of institutional changes in the UK housing market using structural break tests and time-varying parameter models. Empirical Economics, 53(2), 617–640.
Publisher: Southern Federal University
Founder: Southern Federal University
ISSN: 2073-6606